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PROTECTIONIST MOVES DENOUNCED IN U.S. SENATE HEARING, ACCORDING TO ALLIANCE FOR CLEAN COAL

 CHICAGO, Nov. 4 /PRNewswire/ -- The Alliance for Clean Coal (ACC), a trade association whose members include western state coal producers and transporters, announced it was pleased that leading senators and key national experts agreed in denouncing state protectionist actions at the recent hearings before the Senate Environment and Public Works Subcommittee on the implementation of the Acid Rain Title of the Clean Air Act Amendments (CAAA) of 1990.
 At the hearing on Oct. 19, Sen. Max Baucus (D-Mont.), chairman of the Environment and Public Works Committee and a key architect of the CAAA said, "The interference of state laws designed to impede the use of low cost, low sulfur coal is particularly distressing." Sen. Alan Simpson (R-Wyo.), ranking minority member of the Clean Air Subcommittee, went on further to state that "this type of state interference was expressly rejected by Congress." Simpson, who also played a key role in the Clean Air debate noted that these laws are inconsistent with the congressional legislative intent.
 The Environmental Defense Fund, a leading national nonprofit environmental organization with over 200,000 members, spoke out against state protectionist actions, and their impacts on the environmental goals of the act. Joe Goffman, EDF's senior counsel, testified that:
 "State actions to restrict compliance choices run counter to one of the critical policy choices Congress made in designing Title IV to be flexible. By eschewing an acid rain program that dictated or favored a particular set of compliance choices, Congress implicitly recognized that utilities faced emissions limitation requirements for a variety of pollutants, requirements that ultimately could be expanded to cover toxics and carbon dioxide. In leaving utilities' SO2 compliance choices unfettered, Congress gave utilities the opportunity to optimize their compliance strategies over the range of pollutants currently and potentially subject to emissions limitation requirements ... In addition to affording utilities complete flexibility in complying with their SO2 requirements, Title IV's emissions-trading provisions give utilities an ongoing incentive to make continual innovations and improvements in their compliance approaches, innovations and improvements that can lead to both lowered costs and enhanced environmental performance. If, however, states interpose constraints on utilities' compliance choices, then those constraints simply will block the signals for innovation that otherwise would be transmitted from the emissions-reduction market."
 Mary Guthrie, deputy attorney general for the state of Wyoming, expressed Wyoming's concern regarding the protectionist state laws at issue during the hearing. Guthrie was in Washington two years ago to argue the case of Wyoming v. Oklahoma before the U.S. Supreme Court, which overturned a similar Oklahoma protectionist law that sought to favor the use of Oklahoma coal. "Apparently," she said, "even a decision by the U.S. Supreme Court invalidating similar protectionist legislation has not deterred states from attempting to disrupt the coal marketplace." She urged that "Congress should step into this situation and address the problem posed by these parochial laws."
 The ACC has filed a lawsuit which seeks to overturn a protectionist Illinois statute against the members of the Illinois Commerce Commission, the state regulatory body responsible for implementation of the law, in U.S. District Court for the Northern District of Illinois. ACC has alleged that the Illinois law requires Illinois electric utilities to discriminate against out of state coal and violates the Commerce Clause of the U.S. Constitution.
 ACC members include: ARCO Coal Company (a division of Atlantic Richfield Company), Kennecott Energy Company, Burlington Northern Railroad Company, Union Pacific Railroad Company, Chicago and North Western Transportation Company and the Southern Pacific Transportation Company.
 -0- 11/4/93
 /CONTACT: Nancy Prowitt or Rick Alcalde for the Alliance for Clean Coal, 703-841-0626/


CO: Alliance for Clean Coal ST: Illinois IN: MNG OIL SU:

KD-DC -- DC039 -- 0958 11/04/93 17:04 EST
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Publication:PR Newswire
Date:Nov 4, 1993
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